Illinois Department of Natural Resources...1) IF UNCONTROLLED EMISSIONS FROM STORAGE TANKS...

Illinois Department of Natural Resources Bn1ce Rauner, Goven1or

Wayne A. Rosenthal, Director

Woolsey Operating Company, LLC 125 North Market St. Ste. 1000 Wichita, KS 67202

September 1, 2017

Re: HVHHF Application for Woodrow #1H-310408-193 (Review #HVHHF-000001) Sec. 31, T04S, ROSE, White County, Illinois

Mr. Woolsey:

Please be advised that the Department has identified an error with Condition #3 in the permit issued to Woolsey Operating

Company, LLC, on August 31, 2017.

Condition #3 originally read as follows:

3. HYDRAULIC FRACTURING FLUID SHALL BE CONFINED TO THE GRASSY CREEK SHALE.

The Department intended to, but inadvertently did not include the Selmier Shale and Blocher Shale formations. As corrected,

Condition #3 reads as follows.

3. HYDRAULIC FRACTURING FLUID SHALL BE CONFINED TO THE GRASSY CREEK SHALE, SELMIER

SHALE, AND BLOCHER SHALE FORMATIONS.

As such, the Department has amended your permit to correct this error. In order to memorialize the amendment and differentiate

the amended permit from the original permit, the following changes have been made:

Condition #3 has been modified as described above.

The Date Issued has been modified to 09/01/2017; and

Condition #87 has been added:

87. THIS PERMIT CORRECTS AN ERROR IN CONDITION #3 OF PERMIT HVHHF-000001 ISSUED

8/31/2017. THE CONDITION IS CORRECTED ACKNOWLEDGING THAT HYDRAULIC FRACTURING

FLUID SHALL BE CONFINED TO THE GRASSY CREEK SHALE, SELMIER SHALE, AND BLOCHER

SHALE FORMATIONS.

Please be advised that this permit supersedes the version of HVHHF-000001 that was issued on 8-31-2017.

Sincerely,

Ernest Kierbach Permit Manager Office of Oil and Gas Resource Management One Natural Resources Way Springfield, Illinois 62702 [email protected]

Attachment- HVHHF-000001 Permit dated 09/01/2017

STATE OF ILLINOIS

DEPARTMENT OF NATURAL RESOURCES

OFFICE OF OIL AND GAS RESOURCE MANAGEMENT

ILLINOIS

COMBINED PERMIT TO PERFORM: HIGH VOLUME HORIZONTAL HYDRAULIC

FRACTURING OPERATIONS, PERMIT NUMBER: HVHHF-000001, AND PERMIT TO

DRILL AND/OR OPERATE A WELL FOR: GAS PRODUCTION, PERMIT NUMBER: 065315

REGISTRATION NUMBER: HVHHF-00003

REGISTRANT

WOOLSEY OPERATING COMPANY, LLC

125 NORTH MARKET STREET SUITE 1000

WICHITA, KANSAS 67202

WELL LOCATION

19905 1650W NEc NE

DATE ISSUED: 09/01/2017

WELL NAME:

WOODROW lH-310408-193

SECTION: 31 TOWNSHIP: 045 RANGE: 08E COUNTY: WHITE

LATTITUDE: 38.1343680 LONGITUDE: -88.3603830

SURFACE ELEVATION: 445 FEET

UNIT AREA

SECTION: 30 TOWNSHIP: 045 RANGE: 08E COUNTY: WHITE SW/4 NE/4; NW/4 SE/4; SW/4 SE/4

SECTION: 31 TOWNSHIP: 045 RANGE: 08E COUNTY: WHITE NW/4 NE/4

WELL SITE

SECTION: 31 TOWNSHIP: 045 RANGE: 08E COUNTY: WHITE EAST 550' OF NE SW NE (8.333 ACERS); NORTH 190'

OF THE EAST 550' OF SE SW NE {2.40 ACRES)

SECTION: 30 TOWNSHIP: 045 RANGE: 08E COUNTY: WHITE SOUTH 150' OF EAST 300' OF THE SOUTH HALF OF SE

SE SW LESS THE EAST 50' (0.8609 ACERS)

HORIZONTAL DRAIN HOLE LOCATION

BEGINNING

07955 1700W NEc NE



END

3460N 2075W SEc SE



TRUE VERTICAL DEPTH: 5280 FEET

DRILLING CONTRACTOR: LES WILSON, INC. TOOL TYPE: ROTARY

STATE OF ILLINOIS



HVHHF PERMIT NUMBER: HVHHF-000001


WELL NAME: WOODROW lH-310408-193

GAS PRODUCTION PERMIT NUMBER: 065315 NATURAL RESOURCES

COMBINED PERMIT TO PERFORM: HIGH VOLUME HORIZONTAL HYDRAULIC

FRACTURING OPERATIONS, PERMIT NUMBER: HVHHF-000001, AND PERMIT TO

DRILL AND/OR OPERATE A WELL FOR: GAS PRODUCTION, PERMIT NUMBER: 065315

REGISTRANT

WOOLSEY OPERATING COMPANY, LLC

125 NORTH MARKET STREET SUITE 1000

WICHITA, KANSAS 67202

PERMIT CONDITIONS:

1. FORMATION(S) PERMITTED TO BE STIMULATED BY THE HIGH VOLUME HORIZONTAL HYDRAULIC FRACTUING

OPERATION: GRASSY CREEK SHALE

2. FORMATION(S) PERMITTED FOR PRODUCTION: GRASSY CREEK SHALE

3. HYDRAULIC FRACTURING FLUID SHALL BE CONFINED TO THE GRASSY CREEK SHALE, SELMIER SHALE, AND BLOCHER

SHALE FORMATIONS.

4. WITHIN 60 DAYS OF COMPLETION OF THE DRILLING OF THE HORIZONTAL DRAINHOLE A DIRECTIONAL DRILLING

SURVEY SHALL BE SUBMITTED TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT.

5. ALL PORTIONS OF THE HORIZONTAL DRAIN HOLE SHALL BE NO LESS THAN 330 FEET FROM THE NEAREST EXTERNAL

BOUNDRAY LINES OF THE HORIZONTAL DRILLING UNIT.

6. ALL PORTIONS OF THE HORIZONTAL DRAIN HOLE SHALL BE NO LESS THAN 900 FEET FROM THE NEAREST LOCATION

OF A PRODUCING WELL, A WELL BEING DRILLED OR A WELL FOR WHICH A PERMIT HAS PREVIOUSLY BEEN ISSUED

(BUT UNDER WHICH THE WELL HAS NOT YET BEEN DRILLED) USING THE SAME INDIVIDUAL RESERVOIR.

7. HIGH VOLUME HORIZONTAL HYDRAULIC FRACTUING SHALL BE LIMITED TO THE HORIZONTAL DRAIN HOLE.

8. MAXIMUM SURFACE TREATING PRESSURE SHALL AT ANY TIME BE NO GREATER THAN 7,900 PSI.

9. ON-SITE FRESH WATER WELLS DESIGNATED AS WSW 1, WSW 1 AND WSW 3, SHALL BE EQUIPPED TO ACCURATELY

MONITOR WATER WITHDRAWALS AND SHALL BE USED AS A SOURCE OF WATER.

10. FRESH WATER WITHDRAWALS FROM THE WSW 1, WSW 2 AND WSW 3 SHALL BE RECORDED AND MAINTAINED BY

THE PERMITTEE.

11. FRESH WATER SHALL ONLY BE TRANSPORTED BY PIPELINE FROM THE WELLS TO THE STORAGE RESERVOIR.

12. HYDRAULIC FRACTURING ADDITIVES, HYDRAULIC FRACTURING FLUID, HYDRAULIC FRACTURING FLOWBACK, AND

PRODUCED WATER SHALL AT ALL TIMES BE STORED IN ABOVE-GROUND TANKS MEETING THE FOLLOWING

REQUIREMENTS UNTIL REMOVED FOR PROPER DISPOSAL OR RECYCLING:

A) CLOSED, WATERTIGHT, VENTED AND CORROSION-RESISTENT;

1) IF UNCONTROLLED EMISSIONS FROM STORAGE TANKS CONTAINING NATURAL GAS OR HYDROCARBON

FLUIDS WILL EXCEED 6 TONS PER YEAR, THE EMISSIONS MUST BE RECOVERED AND ROUTED TO A FLARE

DESIGNED IN ACCORDANCE WITH 40 CFR 60.18 AND CERTIFIED BY THE MANUFACTURER OF THE DEVICE;

2) THE PERMITTEE SHALL MAINTIAN AND OPERATE THE FLARE IN ACCORDANCE WITH MANUFACTURE'S

SPECIFICATIONS; AND

3) THE FLARE MUST BE EQUIPPED WITH AN AUTO-IGNITER AND A RELIABLE CONTINUOUS IGNITION SOURCE

OVER THE DURATION OF PRODUCTION.

B) CONSTRUCTED OF MATERIALS COMPATIBLE WITH THE COMPOSTION OF THE HYDRAULIC FRACTURING FLUID,

HYDRAULIC FRACTURING FLOWBACK, AND PRODUCED WATER;

C) OF SUFFICIENT PRESSURE RATING; AND

D) ROUTINELY INSPECTED FOR CORROISION ON AT LEAST A SEMIANNUAL BASIS; INSPECTION RECORDS MUST

BE MAINTAINED.

13. IN ACCORDANCE WITH THE HYDRAULIC FRACTURING FLUIDS AND FLOWBACK PLAN AND THE CONTAINMENT

PLAN, AND AS APPROVED BY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT, THE USE OF A RESERVE PIT

IS ALLOWED FOR THE TEMPORARY STORAGE OF HYDRAULIC FRACTURING FLOWBACK. THE RESERVE PIT SHALL BE

Page 2 of 12

STATE OF ILLINOIS






GAS PRODUCTION PERMIT NUMBER: 065315 :1 NATURAL RESOURCES

USED ONLY IN THE EVENT OF A LACK OF CAPACITY FOR TANK STORAGE DUE TO HIGHER THAN EXPECTED VOLUME

OR RATE OF HYDRAULIC FRACTURING FLOWBACK, OR OTHER UNANTICIPATED FLOWBACK OCCURRENCE.

14. ALL RESERVE PITS MUST COMPLY WITH THE FOLLOWING CONSTRUCTION STANDARDS AND LINER

SPECIFICATIONS:

A) THE SYNTHETIC LINER MATERIAL SHALL HAVE A MINIMUM THICKNESS OF 24 MILS WITH HIGH PUNCTURE AND

TEAR STRENGTH AND BE IMPERVIOUS AND RESISTANT TO DETERIORATION;

B) THE PIT LINING SYSTEM SHALL BE DESIGNED TO HAVE A CAPACITY AT LEAST EQUIVALENT TO 110% OF THE

MAXIMUM VOLUME OF HYDRAULIC FRACTURING FLOWBACK ANTICIPATED TO BE RECOVERED;

C) THE LINED PIT SHALL BE CONSTRUCTED, INSTALLED, AND MAINTAINED IN ACCORDANCE WITH THE

MANUFACTURERS' SPECIFICATIONS AND GOOD ENGINEERING PRACTICES TO PREVENT OVERFLOW DURING

ANY USE;

D) THE LINER SHALL HAVE SUFFICIENT ELONGATION TO COVER THE BOTTOM AND INTERIOR SIDES OF THE PIT

WITH THE EDGES SECURED WITH AT LEAST A 12-INCH DEEP ANCHOR TRENCH AROUND THE PIT PERIMETER

TO PREVENT ANY SLIPPAGE OR DESTRUCTION OF THE LINER MATERIALS;

E) THE FOUNDATION FOR THE LINER SHALL BE FREE OF ROCK AND CONSTRUCTED WITH SOIL HAVING A

MINIMUM THICKNESS OF 12 INCHES AFTER COMPACTION COVERING THE ENTIRE BOTTOM AND INTERIOR

SIDES OF THE PIT; AND

F) IF LOCATED IN THE REGULATORY FLOODWAY, THE RESERVE PIT SHALL BE CONSIDERED A CONSTRUCTION

SUBJECT TO 17 ILL. ADM. CODE 3706.240 AND 3706.630 AND, IN ADDITION TO THE REQUIREMENTS OF 62 ILL.

ADM. CODE SECTION (B)(l) THROUGH (B)(S), SHALL BE CONSTRUCTED TO THE STANDARDS SET FORTH IN 17

ILL. ADM. CODE 3706.530(B) OR (C), OR A SUCCESSOR RULE, AS APPLICABLE. NO RESERVE PITS MAY BE

LOCATED IN THE REGULATORY FLOODWAY OR THE FLOOD FRINGE, UNLESS THE APPLICANT FIRST SECURES

THE NECESSARY PERMITS AND COMPLETES ANY MITIGATION MEASURES REQUIRED BY ANY PERMITTING

AGENCY.

G) HYDRAULIC FRACTURING FLOWBACK RESERVE PIT LINERS SHALL BE DISPOSED OF IN AN AGENCY-PERMITTED

SPECIAL WASTE LANDFILL.

15. CLASS II INJECTION WELL(S) APPROVED FOR DISPOSAL OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING

FLOWBACK:

A) TRUEFLO #1, REFERENCE NUMBER: 216072, LOCATION: 0110N 0110W SEc SW, SECTION 06 TOWNSHIP: 06S

RANGE: 09E COUNTY: WHITE

16. PRIOR TO ACCEPTING ANY HYDRAULIC FRACTURING FLOWBACK OR PRODUCED WATERFROM THE WOODROW

lH-310408-193, THE CLASS II INJECTION DISPOSAL WELL MUST BE EQUIPPED WITH AN ELECTRONIC FLOWMETER.

17. THE PERMITTEE SHALL NOT DISPOSE OF ANY HYDRAULIC FRACTURING FLOWBACK OR PRODUCED WATER FROM

THE WOODROW lH-310408-193 AT THE TRUEFLO #1 IF, AT THE TIME OF DISPOSAL, TRUEFLO SOLUTIONS, LLC IS

SUBJECT TO ANY UNABATED NOTICES OF VIOLATION WHICH HAVE REACHED A FINAL ADMINISTRATIVE DECISION

OF THE DEPARTMENT OR THE ILLINOIS ENVIRONMENTAL PROTECTION AGENCY OR ANY COURT DECISIONS

RELATED TO SUCH FINAL ADMINISTRATIVE DECISIONS OR OTHER VIOLATIONS RELATED TO THE TRUEFLO #1.

18. AT LEAST 2 BUSINESS DAYS PRIOR TO COMMENCEMENT OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING

OPERATIONS, THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT OF INTENT

TO DISPOSE HYDRAULIC FRACTURING FLOWBACK FROM THE WOODROW lH-310408-193 IN THE TRUEFLO #1. THE

PERMITTEE SHALL NOT DISPOSE OF HYDRAULIC FRACTURING FLOWBACK FROM THE WOODROW lH-310408-193

IN THE TRUEFLO #1 WITHOUT RECEIVING WRITTEN APPROVAL OF THE OFFICE OF OIL AND GAS RESOURCE

MANAGEMENT.

19. AT LEAST 2 BUSINESS DAYS PRIOR TO DISPOSAL OF PRODUCED WATER FROM THE WOODROW lH-310408-193,

THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT OF INTENT TO DISPOSE

PRODUCED WATER FROM THE WOODROW lH-310408-193 IN THE TRUEFLO #1. THE PERMITTEE SHALL NOT

DISPOSE OF HYDRAULIC FRACTURING FLOWBACK OR PRODUCED WATER FROM THE WOODROW lH-310408-193

IN THE TRUEFLO #1 WITHOUT RECEIVING WRITTEN APPROVAL OF THE OFFICE OF OIL AND GAS RESOURCE

MANAGEMENT.

20. NO MORE THAN ONE HOUR BEFORE INITIATING ANY STAGE OF THE HIGH VOLUME HORIZONTAL HYDRAULIC

FRACTURING OPERATIONS, ALL SECONDARY CONTAINMENT FOR ALL ABOVE-GROUND TANKS AND ADDITIVE

STAGING AREAS MUST BE VISUALLY INSPECTED TO ENSURE THAT ALL STRUCTURES AND EQUIPMENT ARE IN PLACE

Page 3 of 12

STATE OF ILLINOIS






GAS PRODUCTION PERMIT NUMBER: 065315 ·1�£1>.1.ltTMlHT 01

NATURAL RESOURCES

AND IN PROPER WORKING ORDER. THE RESULTS OF THIS INSPECTION MUST BE RECORDED AND DOCUMENTED

ON A FORM PRESCRIBED BY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT, MAINTAINED IN THE WELL

FILE, AND MADE AVAILABLE AT THE WELL SITE TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT UPON

REQUEST.

21. ANY SECONDARY CONTAINMENT MUST BE SUFFICIENTY TO CONTAIN 150% OF THE CAPACITY OF THE SINGLE

LARGEST CONTAINER OR TANK WITHIN A COMMON CONTAINMENT AREA.

22. ALL PIPING, CONVEYANCES, VALVES IN CONTACT WITH HYDRAULIC FRACTURING FLUID, HYDRAULIC FRACTURING

FLOWBACK, OR PRODUCED WATER MUST BE:

A) CONSTRUCTED OF MATERIALS COMPATIBLE WITH THE EXPECTED COMPOSITION OF THE HYDRAULIC

FRACTURING FLUID, HYDRAULIC FRACTURING FLOWBACK, AND PRODUCED WATER;

B) OF SUFFICIENT PRESSURE RATING;

C) ABLE TO RESIST CORROSION; AND

D) MAINTAINED IN A LEAK-FREE CONDITION.

23. STATIONARY FUELING TANKS SHALL HAVE THE FOLLOWING:

A) SECONDARY CONTAINMENT;

B) FILLING OPERATIONS SHALL BE SUPERVISED AT THE FUELING TRUCK AND AT THE TANK IF THE TANK IS NOT

VISIBLE TO THE FUELING OPERATOR FROM THE TRUCK; AND

C) TROUGHS, DRIP PADS, OR DRIP PANS ARE REQUIRED BENEATH THE FILL PORT OF A STATIONARY FUELING

TANK DURING FILLING OPERATIONS IF THE FILL PORT IS NOT WITHIN THE SECONDARY CONTAINMENT.

24. THE FINAL CONFIGURATION OF SURFACE EQUIPMENT ASSOCIATED WITH THE HIGH VOLUME HORIZONTAL

HYDRAULIC FRACTURING TREATMENT, INCLUDING THE INJECTION LINES AND MANIFOLD, ASSOCIATED VALVES,

FRACTURE HEAD OR TREE AND ANY OTHER WELLHEAD COMPONENTS OR CONNECTIONS, MUST BE PRESSURE

TESTED PURSUANT TO THE FOLLOWING REQUIREMENTS BEFORE ANY PUMPING OF HYDRAULIC FRACTURING

FLUID:

A) THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY

PHONE AND ELECTRONIC MAIL AT LEAST 24 HOURS BEFORE CONDUCTING A PRESSURE TEST OF THE FINAL

CONFIGURATION OF THE SURFACE EQUIPMENT USED FOR THE HIGH VOLUME HORIZONTAL HYDRAULIC

FRACTURING TREATMENT TO ENABLE AN INSPECTOR TO BE PRESENT WHEN THE TEST IS PERFORMED

B) THE FINAL CONFIGURATION OF THE SURFACE EQUIPMENT USED FOR THE HIGH VOLUME HORIZONTAL

HYDRAULIC FRACTURING TREATMENT MUST BE PRESSURE TESTED WITH FRESH WATER OR BRINE TO AT LEAST

THE MAXIMUM ANTICIPATED TREATMENT PRESSURE FOR AT LEAST 30 MINUTES WITH LESS THAN A 5%

PRESSURE LOSS.

C) A RECORD OF THE PRESSURE TEST MUST BE MADE ON A FORM PRESCRIBED BY THE OFFICE OF OIL AND GAS

RESOURCE MANAGEMENT, MAINTAINED BY THE PERMITTEE IN THE WELL FILE, AND MADE AVAILABLE AT THE

WELL SITE TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT UPON REQUEST.

D) IF THE CONFIGURATION OF SURFACE EQUIPMENT USED FOR THE HIGH VOLUME HORIZONTAL HYDRAULIC

FRACTURING TREATMENT HAS BEEN RECONFIGURED OR CHANGED IN ANY MANNER THAT BREAKS ANY

PRESSURE CONNECTION AFTER A STAGE OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING

OPERATIONS TREATMENT, THE PRESSURE TEST REQUIREMENTS OF 62 IAC 245.810 (A) THROUGH (C) MUST BE

SUCCESSFULLY REPEATED BEFORE INITIATING ANY SUBSEQUENT STAGE OF HIGH VOLUME HORIZONTAL

HYDRAULIC FRACTURING OPERATIONS.

25. DRILL CUTTINGS, DRILLING FLUIDS AND DRILLING WASTES MUST BE STORED AND DISPOSED OF PURSUANT 62 ILL

ADM. CODE PART 245.510 AND THE REQUIREMENTS OF THE RULES PROMULGATED UNDER THE ILLINOIS OIL AND

GAS ACT WHEN NOT IN CONFLICT WITH 62 ILL. ADM. CODE PART 245.510.

26. SURFACE CASING SHALL BE USED AND SET TO A DEPTH OF AT LEAST 720 FEET, OR 100 FEET BELOW THE BASE OF

THE DEEPEST FRESH WATER, WHICHEVER IS DEEPER.

27. SURFACE CASING MUST BE MADE OF STEEL AND CONFORM TO WITH API SPEC 5CT JULY 2011.

28. SURFACE CASING IN THE WELL CONSTRUCTION MUST BE IN A MANNER CONSISTENT WITH API SPEC 5CT JULY 2011.

29. CASING THREAD COMPOUND MUST CONFORM TO AND MEET ALL MANUFACTURING AND MATERIAL

REQUIREMENTS OF THE INDUSTRY STANDARDS SET FORTH IN API RP SA3 NOVEMBER 2009.

30. CASING THREAD COMPOUND IN THE WELL CONSTRUCTION MUST BE IN A MANNER CONSISTENT WITH API RP SA3

NOVEMBER 2009.

Page 4 of 12

STATE OF ILLINOIS






GAS PRODUCTION PERMIT NUMBER: 065315 I NATURAL RESOURCES

31. THE BOREHOLE MUST BE CIRCULATED AND CONDITIONED BEFORE SURFACE CASING SETTING AND CEMENTING

TO ENSURE AN ADEQUATE CEMENT BOND.

32. THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY

PHONE AND ELECTRONIC MAIL AT LEAST 24 HOURS BEFORE SETTING AND CEMENTING SURFACE CASING TO

ENABLE AN INSPECTOR TO BE PRESENT.

33. CENTRALIZERS ARE REQUIRED TO BE USED AS FOLLOWS TO KEEP THE CASING IN THE CENTER OF THE WELLBORE

BEFORE AND DURING CEMENT OPERATIONS:

A) A CENTRALIZER SHALL BE PLACED AT THE BOTTOM OF THE SURFACE CASING STRING OR SHOE;

B} CENTRALIZERS SHALL BE PLACED ABOVE AND BELOW A STAGE COLLAR OR DIVERTING TOOL, IF RUN;

C} CENTRALIZERS SHALL BE PLACED THROUGH USABLE-QUALITY WATER ZONES;

D) CENTRALIZERS SHALL BE PLACED ON EVERY FOURTH JOINT FROM THE CEMENT SHOE TO THE GROUND

SURFACE OR TO THE BOTTOM OF THE CELLAR;

E} THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT MAY REQUIRE ADDITIONAL CENTRALIZATION AS

NECESSARY TO ENSURE THE INTEGRITY OF THE WELL DESIGN IS ADEQUATE; AND

F} ALL CENTRALIZERS MUST CONFORM TO AND SHALL MEET SPECIFICATIONS IN, OR EQUIVALENT TO, THE

INDUSTRY STANDARDS SET FORTH IN API SPEC l0D SEPTEMBER 2002, REAFFIRMED AUGUST 2010, API SPEC

10TR4 MAY 2008, AND API RP l0D-2 AUGUST 2004, REAFFIRMED JULY 2010.

34. A PRE-FLUSH OR SPACER MUST BE PUMPED AHEAD OF THE CEMENT.

35. SURFACE CASING CEMENT MUST:

A) BE CLASS A CEMENT OR, ALTERNATIVELY, IF THE APPLICANT REQUESTS BEFORE THE POUR IN WRITING WITH

SUFFICIENT PROOF OF NEED AS DETERMINED BY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT, AND

THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT APPROVES THE USE IN WRITING BEFORE THE POUR,

CLASS B CEMENT. CLASS A AND CLASS B CEMENT MEANS CLASS A AND CLASS B CEMENT AS DESCRIBED IN THE

DOCUMENT INCORPORATED BY REFERENCE IN API SPEC l0A DECEMBER 2010;

B) MEET THE CEMENT REQUIREMENTS OF API SPEC l0A DECEMBER 2010, INCLUDING BUT NOT LIMITED TO

BEING POURED WITH THE RATIO OF WATER TO CEMENT MIX AND DENSITY DESIRED IN API SPEC l0A

DECEMBER 2010; AND

C} BE APPLIED BEHIND THE CASING ACCORDING TO THE FOLLOWING:

1) CEMENT ACTIVITIES SHALL BE DESIGNED AND CONSTRUCTED IN A MANNER TO:

I. SECURE THE CASING IN THE WELLBORE;

II. ISOLATE AND PROTECT FRESH GROUNDWATER;

Ill. ISOLATE ABNORMALLY PRESSURED ZONES, LOST CIRCULATION ZONES, AND ANY POTENTIAL FLOW

ZONES, INCLUDING HYDROCARBON AND FLUID-BEARING ZONES;

IV. PROPERLY CONTROL FORMATION PRESSURE AND ANY PRESSURE FROM DRILLING, COMPLETION

AND PRODUCTION;

V. PROTECT THE CASING FROM CORROSION AND DEGRADATION; AND

VI. PREVENT GAS FLOW IN THE ANNULUS.

2) FOR ALL CEMENTING ACTIVITIES, THE CEMENT MUST BE PUMPED AT A RATE AND IN A FLOW REGIME

THAT INHIBITS CHANNELING OF THE CEMENT IN THE ANNULUS.

36. SURFACE CASING MUST BE FULLY CEMENTED TO THE SURFACE WITH EXCESS CEMENTS. CEMENTING MUST BE BY

THE PUMP AND PLUG METHOD WITH A MINIMUM OF 25% EXCESS CEMENT WITH APPROPRIATE LOST

CIRCULATION MATERIAL, UNLESS ANOTHER AMOUNT OF EXCESS CEMENT IS APPROVED BY THE OFFICE OF OIL

AND GAS RESOURCE MANAGEMENT. IF CEMENT RETURNS ARE NOT OBSERVED AT THE SURFACE, THE PERMITTEE

MUST PERFORM REMEDIAL ACTIONS AS APPROPRIATE.

37. AFTER THE CEMENT IS PLACED BEHIND THE SURFACE CASING, THE CEMENT MUST BE TESTED (COMPRESSIVE

STRENGTH TEST} AND CEMENT JOB LOGS MAINTAINED AS FOLLOWS:

A) AFTER THE CEMENT IS PLACED BEHIND THE CASING, THE PERMITTEE SHALL WAIT ON CEMENT TO SET UNTIL

THE CEMENT ACHIEVES A CALCULATED COMPRESSIVE STRENGTH OF AT LEAST 500 POUNDS PER SQUARE

INCH, AND A MINIMUM OF 8 HOURS BEFORE THE CASING IS DISTURBED IN ANY WAY, INCLUDING

INSTALLATION OF A BLOWOUT PREVENTER.

Page 5 of 12

DEPARTMENT OF NATURAL RESOURCES • STATE OF ILLINOIS

� OFFICE OF OIL AND GAS RESOURCE MANAGEMENT

HVHHF PERMIT NUMBER: HVHHF-000001 DATE ISSUED: 09/01/2017

WELL NAME: WOODROW lH-310408-193 GAS PRODUCTION PERMIT NUMBER: 065315

RESOURCES

B) CEMENT COMPRESSIVE STRENGTH TESTS MUST BE PERFORMED ON ALL CEMENTED SURFACE, INTERMEDIATE,AND PRODUCTION CASING STRINGS IN ACCORDANCE WITH THE INDUSTRY STANDARDS SET FORTH IN APISPEC lOA DECEMBER 2010:1) THE CEMENT SHALL HAVE A 72-HOUR COMPRESSIVE STRENGTH OF AT LEAST 1,200 PSI; AND2) THE FREE WATER SEPARATION SHALL BE NO MORE THAN 6 MILLILITERS PER 250 MILLILITERS OF CEMENT.

C) CEMENT JOB LOGS MUST BE KEPT FOR ALL CEMENTING ACTIVITIES PURSUANT TO THE FOLLOWINGREQUIREMENTS:1) CEMENT JOB LOGS SHALL PROVIDE INFORMATION ABOUT THE CEMENTING ACTIVITIES AS SPECIFIED ON

A FORM TO BE PRESCRIBED BY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT, INCLUDING, BUTNOT LIMITED TO:

I. DATES OF CEMENTING;II. SOURCE OF THE CEMENT;Ill. TYPE OF CEMENT; AND IV. AMOUNT USED.

2) A COPY OF THE CEMENT JOB LOGS AND CEMENT COMPRESSIVE STRENGTH TEST RESULTS FOR ALLCEMENTED SURFACE, INTERMEDIATE, AND PRODUCTION CASING STRINGS IN THE WELL SHALL BEMAINTAINED IN THE WELL FILE AND, UPON NOTICE BY THE OFFICE OF OIL AND GAS RESOURCEMANAGEMENT, BE MADE AVAILABLE TO OFFICE OF OIL AND GAS RESOURCE MANAGEMENT INSPECTORSAT THE WELL SITE DURING DRILLING AND HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURINGOPERATIONS AND SHALL BE MADE AVAILABLE TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENTUPON REQUEST.

3) THE PERMITTEE SHALL PROVIDE THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT A COPY OF ALLCEMENT JOB LOGS AND COMPRESSIVE STRENGTH TEST RESULTS 30 DAYS AFTER COMPLETION OFCEMENTING ACTIVITIES.

38. AFTER THE SURFACE CASING CEMENT OPERATION IS COMPLETED TO THE SURFACE, THE PERMITTEE SHALL NOTIFYTHE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY PHONE AND ELECTRONIC MAIL TOENABLE AN INSPECTOR TO BE PRESENT FOR TESTING THE INTERNAL MECHANICAL INTEGRITY OF THE SURFACECASING AND INSTALLATION AND TESTING OF THE BLOWOUT PREVENTION EQUIPMENT.

39. THE INTERNAL MECHANICAL INTEGRITY OF SURFACE CASING STRINGS SHALL BE TESTED:A) WITH FRESH WATER, MUD OR BRINE. IF MUD IS USED, THE MUD CANNOT BE SO VISCOUS OR CONTAIN SO

MUCH PARTICULATE THAT IT BLOCKS, PLUGS OR OBSCURES THE PRESENCE OF ANY POTENTIAL LEAKS IN THECASING STRING;

B) TO NO LESS THAN 0.22 PSI PER FOOT OF CASING STRING LENGTH OR 1,500 PSI, WHICHEVER IS GREATER, BUTNOT TO EXCEED 70% OF THE MINIMUM INTERNAL YIELD; AND

C) FOR AT LEAST 30 MINUTES WITH LESS THAN A 5% PRESSURE LOSS.40. IF THE PRESSURE DECLINES MORE THAN 5% OR IF THERE ARE OTHER INDICATIONS OF A LEAK, CORRECTIVE ACTION

SHALL BE TAKEN BEFORE CONDUCTING FURTHER DRILLING OPERATIONS.41. A FORMATION PRESSURE INTEGRITY TEST SHALL BE CONDUCTED BELOW THE SURFACE CASING IN ORDER TO

DEMONSTRATE:A) THAT THE INTEGRITY OF THE CASING SHOE IS SUFFICIENT TO CONTAIN THE WELLBORE PRESSURES

ANTICIPATED IN THE PERMIT APPLICATION;B) THAT NO FLOW PATH EXISTS TO FORMATIONS ABOVE THE CASING SHOE; ANDC) THAT THE CASING SHOE IS COMPETENT TO HANDLE AN INFLUX OF FORMATION FLUID OR GAS WITHOUT

BREAKING DOWN.42. THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY

PHONE AND ELECTRONIC MAIL AT LEAST 24 HOURS BEFORE CONDUCTING A FORMATION PRESSURE INTEGRITYTEST TO ENABLE AN INSPECTOR TO BE PRESENT WHEN THE TEST IS PERFORMED.

43. THE ACTUAL HYDRAULIC FRACTURING TREATMENT PRESSURE MUST NOT EXCEED THE MECHANICAL INTEGRITYTEST PRESSURE OF THE CASING TESTED AT ANY TIME DURING HIGH VOLUME HORIZONTAL HYDRAULICFRACTURING OPERATIONS.

44. RECORDS OF ALL FORMATION INTEGRITY TESTS MUST BE KEPT PURSUANT TO THE FOLLOWING REQUIREMENTS:

Page 6 of 12

STATE OF ILLINOIS






GAS PRODUCTION PERMIT NUMBER: 065315 RESOURCES

A) A RECORD OF THE FORMATION INTEGRITY TEST MUST BE MAINTAINED BY THE PERMITTEE IN THE WELL FILE

AND MUST BE SUBMITTED TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT ON A FORM

PRESCRIBED BY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT BEFORE CONDUCTING HIGH VOLUME

HORIZONTAL HYDRAULIC FRACTURING OPERATIONS.

B) PERMITTEE SHALL PROVIDE THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT WITH A COPY OF ALL

FORMATION INTEGRITY TEST RESULTS 30 DAYS AFTER COMPLETION OF WELL CONSTRUCTION.

C) PERMITTEE SHALL RETAIN THESE RECORDS FOR THE LIFE OF THE WELL UNTIL THE WELL IS PLUGGED,

ABANDONED AND RESTORED IN ACCORDANCE WITH THE ILLINOIS OIL AND GAS ACT, THE ADMINISTRATIVE

RULES PROMULGATED UNDER THAT ACT, AND SUBPART J OF THIS PART.

45. PRODUCTION CASING MUST BE FULLY CEMENTED FROM THE PRODUCTION CASING SHOE TO 500 FEET ABOVE THE

TOP PERFORATED FORMATION, UNLESS AN ALTERNATE CEMENTING PLAN IS APPROVED BY THE OFFICE OF OIL

AND GAS RESOURCE MANAGEMENT; THE PERMITTEE MUST MAKE A WRITTEN OR ELECTRONIC MAIL REQUEST TO

THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT FOR AN ALTERNATE CEMENTING PLAN.

46. PRODUCTION CASING MUST CONFORM TO THE INDUSTRY STANDARDS SET FORTH IN API SPEC SCT JULY 2011.

47. THE USE OF PRODUCTION CASING IN THE WELL CONSTRUCTION MUST BE IN A MANNER CONSISTENT WITH THE

INDUSTRY STANDARDS SET FORTH IN API SPEC SCT JULY 2011.

48. CASING THREAD COMPOUND MUST CONFORM TO AND MEET ALL MANUFACTURING AND MATERIAL

REQUIREMENTS OF THE INDUSTRY STANDARDS SET FORTH IN API RP SA3 NOVEMBER 2009.

49. THE USES OF CASING THREAD COMPOUND IN THE WELL CONSTRUCTION MUST BE IN A MANNER CONSISTENT

WITH THE INDUSTRY STANDARDS SET FORTH IN API RP SA3 NOVEMBER 2009.

50. THE PRODUCTION BOREHOLE MUST BE CIRCULATED AND CONDITIONED BEFORE PRODUCTION CASING SETTING

AND CEMENTING TO ENSURE AN ADEQUATE CEMENT BOND.

51. THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY

PHONE AND ELECTRONIC MAIL BEFORE SETTING AND CEMENTING PRODUCTION CASING TO ENABLE AN

INSPECTOR TO BE PRESENT.

52. WHEN SETTING PRODUCTION CASING, CENTRALIZERS ARE REQUIRED TO BE USED AS FOLLOWS TO KEEP THE

CASING IN THE CENTER OF THE WELLBORE PRIOR TO AND DURING CEMENT OPERATIONS:

A) IN THE VERTICAL PORTION OF THE WELL, A CENTRALIZER SHALL BE PLACED ON EVERY FOURTH JOINT FROM

THE KICKOFF POINT TO THE GROUND SURFACE OR TO THE BOTTOM OF THE CELLAR;

B) IN THE HORIZONTAL PORTION OF THE WELL, RIGID CENTRALIZERS SHALL BE USED AND PLACED ACCORDINGLY

TO ENSURE AT LEAST 80% STANDOFF;

C) THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT MAY REQUIRE ADDITIONAL CENTRALIZERS AS

NECESSARY TO ENSURE THE INTEGRITY OF THE WELL DESIGN; AND

D) ALL CENTRALIZERS USED IN THE VERTICAL PORTION OF THE WELL MUST CONFORM TO AND SHALL MEET

SPECIFICATIONS IN, OR EQUIVALENT TO, THE INDUSTRY STANDARDS SET FORTH IN THE DOCUMENTS

REFERENCED IN API SPEC l0D SEPTEMBER 2002, REAFFIRMEED AUGUST 2010, API SPEC 10TR4 MAY 2008, AND

APR RP l0D-2 AUGUST 2004 REAFFIRMED JULY 2010.

53. A PRE-FLUSH OR SPACER MUST BE PUMPED AHEAD OF THE CEMENT

54. PRODUCTION CASING CEMENT MUST:

A) MEET THE CEMENT REQUIREMENTS OF API SPEC lOA DECEMBER 2010 AND BE PREPARED TO MINIMIZE ITS

FREE WATER CONTENT IN ACCORDANCE WITH THE INDUSTRY STANDARDS SET FORTH IN API SPEC l0A

DECEMBER 2010; AND

B) BE APPLIED BEHIND THE CASING ACCORDING TO THE FOLLOWING:

1) CEMENT ACTIVITIES SHALL BE DESIGNED AND CONSTRUCTED IN A MANNER TO:

I. SECURE THE CASING IN THE WELLBORE;

II. ISOLATE AND PROTECT FRESH GROUNDWATER;

Ill. ISOLATE ABNORMALLY PRESSURED ZONES, LOST CIRCULATION ZONES, AND ANY POTENTIAL FLOW

ZONES, INCLUDING HYDROCARBON AND FLUID-BEARING ZONES;

IV. PROPERLY CONTROL FORMATION PRESSURE AND ANY PRESSURE FROM DRILLING, COMPLETION

AND PRODUCTION;

V. PROTECT THE CASING FROM CORROSION AND DEGRADATION; AND

VI. PREVENT GAS FLOW IN THE ANNULUS.

Page 7 of 12

STATE OF ILLINOIS


OFFICE OF Oil AND GAS RESOURCE MANAGEMENT




GAS PRODUCTION PERMIT NUMBER: 065315 ·1Ol,-AltTM(NT 01

NATURAL RESOURCES

2) FOR All CEMENTING ACTIVITIES, THE CEMENT MUST BE PUMPED AT A RATE AND IN A FLOW REGIME

THAT INHIBITS CHANNELING OF THE CEMENT IN THE ANNULUS.

55. AFTER THE CEMENT IS PLACED BEHIND THE PRODUCTION CASING, THE CEMENT MUST BE TESTED AND CEMENT

JOB LOGS MAINTAINED PURSUANT TO THE REQUIREMENTS AS FOLLOWS:

A) AFTER THE CEMENT IS PLACED BEHIND THE CASING, THE PERMITTEE SHALL WAIT ON CEMENT TO SET UNTIL

THE CEMENT ACHIEVES A CALCULATED COMPRESSIVE STRENGTH OF AT LEAST 500 POUNDS PER SQUARE

INCH, AND A MINIMUM OF 8 HOURS BEFORE THE CASING IS DISTURBED IN ANY WAY, INCLUDING

INSTALLATION OF A BLOWOUT PREVENTER.

B} CEMENT COMPRESSIVE STRENGTH TESTS MUST BE PERFORMED ON All CEMENTED SURFACE, INTERMEDIATE,

AND PRODUCTION CASING STRINGS IN ACCORDANCE WITH THE INDUSTRY STANDARDS SET FORTH IN API

SPEC l0A DECEMBER 2010:

1) THE CEMENT SHALL HAVE A 72-HOUR COMPRESSIVE STRENGTH OF AT LEAST 1,200 PSI; AND

2) THE FREE WATER SEPARATION SHALL BE NO MORE THAN 6 MILLILITERS PER 250 MILLILITERS OF CEMENT.

C} CEMENT JOB LOGS MUST BE KEPT FOR All CEMENTING ACTIVITIES PURSUANT TO THE FOLLOWING

REQUIREMENTS:

1} CEMENT JOB LOGS SHALL PROVIDE INFORMATION ABOUT THE CEMENTING ACTIVITIES AS SPECIFIED ON

A FORM TO BE PRESCRIBED BY THE OFFICE OF Oil AND GAS RESOURCE MANAGEMENT, INCLUDING, BUT

NOT LIMITED TO:

I. DATES OF CEMENTING;

II. SOURCE OF THE CEMENT;

Ill. TYPE OF CEMENT; AND

IV. AMOUNT USED.

2) A COPY OF THE CEMENT JOB LOGS AND CEMENT COMPRESSIVE STRENGTH TEST RESULTS FOR All

CEMENTED SURFACE, INTERMEDIATE, AND PRODUCTION CASING STRINGS IN THE WELL SHALL BE

MAINTAINED IN THE WELL FILE AND, UPON NOTICE BY THE OFFICE OF Oil AND GAS RESOURCE

MANAGEMENT, BE MADE AVAILABLE TO OFFICE OF OIL AND GAS RESOURCE MANAGEMENT INSPECTORS

AT THE WELL SITE DURING DRILLING AND HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING

OPERATIONS AND SHALL BE MADE AVAILABLE TO THE OFFICE OF Oil AND GAS RESOURCE MANAGEMENT

UPON REQUEST.

3) THE PERMITTEE SHALL PROVIDE THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT A COPY OF All

CEMENT JOB LOGS AND COMPRESSIVE STRENGTH TEST RESULTS 30 DAYS AFTER COMPLETION OF

CEMENTING ACTIVITIES.

56. AFTER THE PRODUCTION CASING CEMENT OPERATION IS COMPLETED, THE PERMITTEE SHALL NOTIFY THE OFFICE

OF Oil AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY PHONE OR ELECTRONIC MAIL TO ENABLE AN

INSPECTOR TO BE PRESENT FOR TESTING THE INTERNAL MECHANICAL INTEGRITY OF THE PRODUCTION CASING

PURSUANT TO SECTION 245.540.

57. THE INTERNAL MECHANICAL INTEGRITY OF THE PRODUCTION CASING STRING OR ANY CASING STRING THAT Will

HAVE PRESSURE EXERTED ON IT DURING STIMULATION OF THE WELL SHALL BE TESTED:

A) WITH FRESH WATER, MUD OR BRINE. IF MUD IS USED, THE MUD CANNOT BE SO VISCOUS OR CONTAIN SO

MUCH PARTICULATE THAT IT BLOCKS, PLUGS OR OBSCURES THE PRESENCE OF ANY POTENTIAL LEAKS IN THE

CASING STRING;

B} TO AT LEAST THE MAXIMUM ANTICIPATED TREATMENT PRESSURE OR 1,500 PSI, WHICHEVER IS GREATER,

BUT NOT TO EXCEED 70% OF THE MINIMUM INTERNAL YIELD;

C} FOR AT LEAST 30 MINUTES WITH LESS THAN A 5% PRESSURE LOSS; AND

D) FOR AT LEAST 30 MINUTES WITH LESS THAN A 5% PRESSURE LOSS.

58. IF THE PRESSURE DECLINES MORE THAN 5% OR IF THERE ARE OTHER INDICATIONS OF A LEAK, CORRECTIVE ACTION

SHALL BE TAKEN BEFORE CONDUCTING FURTHER DRILLING OPERATIONS.

59. RECORDS OF INTERNAL MECHANICAL INTEGRITY PRESSURE TESTS FOR All CASING STRINGS MUST BE KEPT

PURSUANT TO THE FOLLOWING REQUIREMENTS:

A) A RECORD OF THE INTERNAL MECHANICAL INTEGRITY PRESSURE TEST FOR EACH CASING STRING MUST BE

MAINTAINED BY THE PERMITTEE IN THE WELL FILE AND MUST BE SUBMITTED TO THE OFFICE OF OIL AND GAS

Page 8 of 12

STATE OF ILLINOIS






GAS PRODUCTION PERMIT NUMBER: 065315 'I Ol,-ARTM(NT 01

NATURAL RESOURCES

RESOURCE MANAGEMENT ON A FORM PRESCRIBED BY THE OFFICE OF OIL AND GAS RESOURCE

MANAGEMENT BEFORE CONDUCTING HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS;

B) THE PERMITTEE SHALL PROVIDE THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT WITH A COPY OF ALL

INTERNAL MECHANICAL INTEGRITY PRESSURE TEST RESULTS FOR ALL CASING STRINGS WITHIN 30 DAYS AFTER

COMPLETION OF WELL CONSTRUCTION; AND

C) THE PERMITTEE SHALL RETAIN THESE RECORDS FOR THE LIFE OF THE WELL UNTIL THE WELL IS PLUGGED,

ABANDONED AND RESTORED IN ACCORDANCE WITH THE ILLINOIS OIL AND GAS ACT, THE ADMINISTRATIVE

RULES PROMULGATED UNDER THAT ACT, AND 62 IAC SECTION 24S SUBPART J.

60. THE WELL SITE SHALL BE RESTORED IN RESTORED IN ACCORDANCE WITH THE REQUIREMENTS OF THE HYDRAULIC

FRACTURING REGULATORY ACT, AND 62 ILLINOIS ADMINISTRATIVE CODE PART 245.

61. IF THE HYDRAULIC FRACTURING FLUID OR HYDRAULIC FRACTURING FLOWBACK MIGRATE INTO A FRESH WATER

ZONE OR TO THE SURFACE FROM THE WELL IN QUESTION OR FROM OTHER WELLS, THE PERMITTEE SHALL

IMMEDIATELY NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT AND THE COUNTY AND CERTIFIED

LOCAL PUBLIC HEALTH OFFICE OF OIL AND GAS RESOURCE MANAGEMENT (IF ANY) AND SHUT IN THE WELL UNTIL

REMEDIAL ACTION THAT PREVENTS THE FLUID MIGRATION IS COMPLETED. THE PERMITTEE SHALL OBTAIN THE

APPROVAL OF THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT PRIOR TO RESUMING OPERATIONS.

62. HYDRAULIC FRACTURING STRINGS, IF USED IN ANY WELLS REGULATED BY 62 ILL. ADM. CODE SECTION 245, SHALL

BE SET OR RESET PURSUANT TO THE FOLLOWING REQUIREMENTS:

A) HYDRAULIC FRACTURING STRINGS MUST BE EITHER STRUNG INTO A PRODUCTION LINER OR RUN WITH A

PACKER SET AT LEAST 100 FEET BELOW THE DEEPEST CEMENT TOP.

B) A FUNCTION-TESTED RELIEF VALVE AND DIVERSION LINE MUST BE INSTALLED AND USED TO DIVERT FLOW

FROM THE HYDRAULIC FRACTURING STRING-CASING ANNULUS TO A COVERED WATERTIGHT STEEL TANK IN

CASE OF HYDRAULIC FRACTURING STRING FAILURE.

1) THE RELIEF VALVE MUST BE SET TO LIMIT THE ANNULAR PRESSURE TO NO MORE THAN 95% OF THE

WORKING PRESSURE RATING OF THE WEAKEST CASINGS FORMING THE ANNULUS.

2) THE ANNULUS BETWEEN THE HYDRAULIC FRACTURING STRING AND THE PRODUCTION OR IMMEDIATE

CASING MUST BE PRESSURIZED TO AT LEAST 250 PSI AND MONITORED.

C) HYDRAULIC FRACTURING STRINGS MUST BE TESTED TO NOT LESS THAN THE MAXIMUM ANTICIPATED

TREATING PRESSURE MINUS THE ANNULUS PRESSURE APPLIED BETWEEN THE FRACTURING STRING AND THE

PRODUCTION OR IMMEDIATE CASING. THE PRESSURE TEST SHALL BE CONSIDERED SUCCESSFUL IF THE

PRESSURE APPLIED HAS BEEN HELD FOR 30 MINUTES WITH NO MORE THAN 5% PRESSURE LOSS.

D) THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY

PHONE AND ELECTRONIC MAIL AT LEAST 24 HOURS BEFORE CONDUCTING A PRESSURE TEST OF THE

HYDRAULIC FRACTURING STRING TO ENABLE AN INSPECTOR TO BE PRESENT WHEN THE TEST IS PERFORMED.

E) A RECORD OF THE PRESSURE TEST SHALL BE MADE ON A FORM PRESCRIBED BY THE OFFICE OF OIL AND GAS

RESOURCE MANAGEMENT, MAINTAINED BY THE PERMITTEE IN THE WELL FILE, AND MADE AVAILABLE AT THE

WELL SITE TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT UPON REQUEST AND INCLUDED IN THE

HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS COMPLETION REPORT.

F) IF ANY CHANGE TO THE WELL INVOLVING RESETTING, REPOSITIONING, RECONNECTING OR BREAKING ANY

PRESSURE CONNECTION OF THE HYDRAULIC FRACTURING STRING OCCURS AFTER A STAGE OF HIGH VOLUME

HORIZONTAL HYDRAULIC TREATMENT, THE PRESSURE TEST REQUIREMENTS OF 62 ILL. ADM. CODE SECTIONS

245.805 (C) THROUGH (E) MUST BE SUCCESSFULLY REPEATED BEFORE INITIATING ANY SUBSEQUENT STAGE

OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING TREATMENT.

63. BEFORE COMMENCEMENT OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS, THE

PERMITTEE MUST NOTIFY AND RECEIVE WRITTEN APPROVAL FROM THE OFFICE OF OIL AND GAS RESOURCE

MANAGEMENT BY U.S. MAIL OR ELECTRONIC MAIL. OFFICE OF OIL AND GAS RESOURCE MANAGEMENT APPROVAL

FOR HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS SHALL BE BASED ON THE PERMITTEE'S

COMPLIANCE WITH THE FOLLOWING:

A) THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT'S DISTRICT OFFICE BY

PHONE AND ELECTRONIC MAIL OR LETTER AT LEAST 48 HOURS BEFORE THE COMMENCEMENT OF HIGH

VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS TO ENABLE AN INSPECTOR TO BE PRESENT. THE

Page 9 of 12

STATE OF ILLINOIS






GAS PRODUCTION PERMIT NUMBER: 065315 RESOURCES

NOTIFICATION UNDER 62 ILL. ADM. CODE SECTION 245.815 SHALL BE NOTICE FOR ALL STAGES OF A MULTIPLE

STAGE HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING TREATMENT.

B) PRIOR TO CONDUCTING HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS AT A WELL SITE,

THE PERMITTEE SHALL CAUSE TO BE PLUGGED ALL PREVIOUSLY ABANDONED UNPLUGGED OR INSUFFICIENTLY

PLUGGED WELL BORES WITHIN 750 FEET OF ANY PART OF THE HORIZONTAL WELL BORE THAT PENETRATED

WITHIN 400 VERTICAL FEET OF THE GEOLOGIC FORMATION THAT WILL BE STIMULATED AS PART OF THE HIGH

VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS. IN DETERMINING WHETHER A WELL HAS BEEN

SUFFICIENTLY PLUGGED, THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT WILL CONSIDER, BUT IS NOT

LIMITED TO, WELL COMPLETION REPORTS, CEMENTING RECORDS, WELL CONSTRUCTION RECORDS, CEMENT

BOND LOGS, TRACER SURVEYS, OXYGEN ACTIVATION LOGS AND PLUGGING RECORDS. PLUGGING UNDER THIS

SUBSECTION SHALL BE PERFORMED AS REQUIRED BY 62 ILL. ADM. CODE SECTION 245.1010.

C) BASELINE WATER QUALITY SAMPLING OF ALL WATER SOURCES WITHIN 1,500 FEET OF THE WELL SITE MUST

BE COMPLETED IN COMPLIANCE WITH 62 ILL. ADM. CODE 245.600.

D) ALL THE FOLLOWING REQUIRED TESTS SHALL BE CONDUCTED:

1) WELL CASING INTERNAL MECHANICAL INTEGRITY TESTS;

2) FORMATION INTEGRITY TESTS;

3) HYDRAULIC FRACTURING STRING PRESSURE TESTS, IF REQUIRED;

4) SURFACE EQUIPMENT PRESSURE TESTS; AND

5) ALL INFORMATION PREVIOUSLY REQUESTED BY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT

SHALL BE SUPPLIED TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT, AND ANY INFORMATION

THAT WAS ACCURATE AT THE TIME OF SUBMISSION BUT NO LONGER ACCURATE SHALL BE UPDATED.

64. BEFORE CONDUCTING HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS, THE PERMITTEE SHALL

USE AN INDEPENDENT THIRD PARTY UNDER THE SUPERVISION OF A PROFESSIONAL ENGINEER OR PROFESSIONAL

GEOLOGIST TO CONDUCT BASELINE WATER QUALITY SAMPLING OF AL� WATER SOURCES WITHIN 1,500 FEET OF

THE WELL SITE. THE PERMITTEE, THROUGH ITS INDEPENDENT THIRD PARTY, SHALL GIVE THE OFFICE OF OIL AND

GAS RESOURCE MANAGEMENT 7 CALENDAR DAYS' NOTICE OF BASELINE WATER QUALITY SAMPLING.

65. FOLLOWING THE COMPLETION OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS, THE

PERMITTEE THROUGH AN INDEPENDENT THIRD PARTY UNDER THE SUPERVISION OF A PROFESSIONAL ENGINEER

OR PROFESSIONAL GEOLOGIST SHALL CONDUCT FOLLOW-UP MONITORING OF ALL WATER SOURCES WITHIN 1,500

FEET OF THE WELL SITE. THE PERMITTEE, THROUGH ITS INDEPENDENT THIRD PARTY, SHALL GIVE THE OFFICE OF

OIL AND GAS RESOURCE MANAGEMENT 7 CALENDAR DAYS' NOTICE OF ALL FOLLOW-UP MONITORING. FOLLOW

UP MONITOIRNG SHALL OCCURE AT 6 MONTHS, 18 MONTHS, AND 30 MONTHS AFTER THE HIGH VOLUME

HORIZONTAL HYDRAULIC FRACTURING OPERATIONS HAVE BEEN COMPLETED, UNLESS THE WATER SOURCE WAS

SAMPLED UNDER BASEDLINE OR FOLLOW-UP MONITORINGS WITHIN THE PREVIOUS MONTH.

66. BASELINE OR FOLLOW-UP MONITORING TESTING RESULTS SHALL BE SUBMITTED TO THE OFFICE OF OIL AND GAS

RESOURCE MANAGEMENT NO LATER THAN 3 CALENDAR DAYS BEFORE COMMENCING HIGH VOLUME

HORIZONTAL HYDRAULIC FRACTURING OPERATIONS, UNLESS THERE ARE NON-DISCLOSURE AGREEMENTS WITH

THE APPLICABLE PRIVATE PROPERTY LANDOWNERS. IN THE CASE OF NON-DISCLOSURE AGREEMENTS, THE

PERMITTEE SHALL PROVIDE A CERTIFICATION TO THE HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING THAT

THE BASELINE TESTING RESULTS HAVE BEEN PROVIDED TO THE APPLICABLE PRIVATE PROPERTY LANDOWNERS

NO LATER THAN 3 CALENDAR DAYS BEFORE COMMENCING HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING

OPERATIONS.

67. NOTHING IN 62 ILL. ADM. CODE PART 245.700 CHEMICAL DISCLOSURE BY PERMITTEE SHALL PROHIBIT THE

PERMITTEE FROM ADJUSTING OR ALTERING THE CONTENTS OF THE FLUID DURING THE TREATMENT PROCESS TO

RESPOND TO UNEXPECTED CONDITIONS, PROVIDED THE PERMITTEE NOTIFIES THE OFFICE OF OIL AND GAS

RESOURCE MANAGEMENT BY ELECTRONIC MAIL WITHIN 24 HOURS OF THE DEPARTURE FROM THE INITIAL

TREATMENT DESIGN AND INCLUDES AN EXPLANATION DETAILING THE REASON FOR THE DEPARTURE.

68. NO LESS THAN 21 CALENDAR DAYS BEFORE PERFORMING THE FIRST STIMULATION TREATMENT OF HIGH VOLUME

HORIZONTAL HYDRAULIC FRACTURING OPERATIONS, THE PERMITTEE OR PERSON PERFORMING THE HIGH

VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS FOR THE PERMITTEE, SHALL MAINTAIN AND

DISCLOSE TO THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT SEPARATE AND UP-TO-DATE MASTER LISTS

OF:

Page 10 of 12

STATE OF ILLINOIS







A) THE BASE FLUID TO BE USED DURING ANY HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS

WITHIN THIS STATE;

B) ALL HYDRAULIC FRACTURING ADDITIVES TO BE USED DURING ANY HIGH VOLUME HORIZONTAL HYDRAULIC

FRACTURING OPERATIONS WITHIN THIS STATE; AND

C} ALL CHEMICALS AND ASSOCIATED CHEMICAL ABSTRACT SERVICE NUMBERS TO BE USED IN ANY HIGH VOLUME

HORIZONTAL HYDRAULIC FRACTURING OPERATIONS WITHIN THIS STATE.

69. ALL PHASES OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS SHALL BE CONDUCTED IN A

MANNER THAT SHALL NOT POSE A SIGNIFICANT RISK TO PUBLIC HEALTH, LIFE, PROPERTY, AQUATIC LIFE, WILDLIFE

OR THE ENVIRONMENT.

70. THE PERMITTEE SHALL BE RESPONSIBLE FOR MANAGING NATURAL GAS AND HYDROCARBON FLUIDS PRODUCED

DURING THE FLOWBACK PERIOD TO ENSURE NO DIRECT RELEASE TO THE ATMOSPHERE OR ENVIRONMENT AS

PURSUANT TO 62 ILL. ADM. CODE SECTION 245.845.

71. THE PERMITTEE SHALL NOTIFY THE OFFICE OF OIL AND GAS RESOURCE MANAGEMENT OF THE DATE WHEN HIGH

VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS ARE COMPLETED AND SHALL DISPOSE OF OR

RECYCLE HYDRAULIC FRACTURING FLUIDS AND HYDRAULIC FRACTURING FLOWBACK PURSUANT TO THE

REQUIREMENTS OF 62 ILL. ADM. CODE SECTION 245.850.

72. ANY RELEASE OF HYDRAULIC FRACTURING FLUID, HYDRAULIC FRACTURING ADDITIVE, HYDRAULIC FRACTURING

FLOWBACK, OR PRODUCED WATER SHALL BE CLEANED UP, REMEDIATED, AND REPORTED PURSUANT TO THE


73. WITHIN 60 CALENDAR DAYS AFTER THE CONCLUSION OF HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING

OPERATIONS, THE PERMITTEE SHALL FILE A HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS

COMPLETION REPORT PURSUANT TO THE REQUIREMENTS OF 62 ILL. ADM. CODE SECTION 245.860.

74. WITHIN 30 DAYS AFTER THE CONCLUSION OF INITIAL COMPLETION ACTIVITIES (I.E., PRODUCTION TESTING OR

DATE OF FIRST PRODUCTION) OR WITHIN 30 DAYS AFTER THE EXPIRATION OF THE PERMIT IF THE WELL WAS NOT

DRILLED, A WELL COMPLETION REPORT SHALL BE SUBMITTED TO THE OFFICE OF OIL AND GAS RESORUCE

MANAGEMENT.

75. WITHIN 90 DAYS AFTER DRILLING CEASES, A WELL DRILLING REPORT SHALL BE SUBMITTED TO THE STATE

GEOLOGICAL SURVEY IN CHAMPAIGN, ILLINOIS.

76. IT IS UNLAWFUL TO PERFORM ANY HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS BY

KNOWINGLY OR RECKLESSLY INJECTING DIESEL.

77. THE PERMITTEE SHALL BE RESPONSIBLE FOR MINIMIZING THE EMISSIONS ASSOCIATED WITH VENTING OF

HYDROCARBON FLUIDS AND NATURAL GAS DURING THE PRODUCTION PHASE TO SAFELY MAXIMIZE RESOURCE

RECOVERY AND MINIMIZE RELEASES TO THE ENVIRONMENT PURSUANT TO THE REQUIREMENTS OF 62 ILL. ADM.

CODE SECTION 245.900.

78. PERMITTEE SHALL RECORD THE AMOUNT OF GAS FLARED OR VENTED FROM EACH HIGH VOLUME HORIZONTAL

HYDRAULIC FRACTURING WELL OR STORAGE TANK ON AT LEAST A WEEKLY BASIS. EVERY 12 MONTHS FROM THE

DATE OF PERMIT ISSUANCE, PERMITTEE SHALL REPORT THE TOTAL AMOUNT OF GAS FLARED OR VENTED FROM

EACH WELL DURING THE PREVIOUS 12 MONTHS, BY WEEK, TO THE OFFICE OF OIL AND GAS RESOURCE

MANAGEMENT.

79. PERMITTEE SHALL DISPOSE OF OR RECYCLE PRODUCED WATER PURSUANT TO THE REQUIREMENTS OF 62 ILL.

ADM. CODE SECTION 245.940.

80. THE PERMITTEE SHALL PERFORM AND COMPLETE PLUGGING OF THE WELL AND RESTORATION OF THE WELL SITE

IN ACCORDANCE WITH THE HYDRAULIC FRACTURING REGULATORY ACT AND THE ILLINOIS OIL AND GAS ACT AND

ANY AND ALL RULES ADOPTED UNDER THESE ACTS.

81. PERMITTEE SHALL RESTORE ANY LANDS USED BY PERMITTEE OTHER THAN THE WELL SITE AND PRODUCTION

FACILITY TO A CONDITION AS CLOSELY APPROXIMATING THE PRE-DRILLING CONDITIONS THAT EXISTED BEFORE

LAND WAS DISTURBED BY SITE PREPARATION ACTIVITIES, DRILLING, OR HIGH VOLUME HORIZONTAL HYDRAULIC

FRACTURING OPERATIONS PURSUANT TO THE REQUIREMENTS OF 62 ILL. ADM. CODE SECTION 245.1020.

82. UNLESS CONTRACTUALLY AGREED TO THE CONTRARY BY PERMITTEE AND SURFACE LANDOWNER, PERMITTEE

SHALL RESTORE THE WELL SITE AND PRODUCTION FACILITY TO A CONDITION AS CLOSELY APPROXIMATING THE

CONDITIONS THAT EXISTED BEFORE THE LAND WAS DISTURBED FOR ANY STAGE OF SITE PREPARATION

Page 11 of 12

STATE OF ILLINOIS







ACTIVITIES, DRILLING AND HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS PURSUANT TO THE


83. THE PERMITTEE SHALL COMPLY WITH ALL PROVISIONS OF THE HYDRAULIC FRACTURING REGULATORY ACT, THE

ADMINISTRATIVE RULES PROMULGATED UNDER THAT ACT, THE ILLINOIS OIL AND GAS ACT, THE ADMINISTRATIVE

RULES PROMULGATED UNDER THAT ACT, AND ALL OTHER APPLICABLE LOCAL, STATE, AND FEDERAL LAWS, RULES,

AND REGULATIONS IN EFFECT AT THE TIME THE PERMIT IS ISSUED.

84. ALL PLANS, MAPS, AND DIAGRAMS SUBMITTED WITH PERMITTEE'S HVHHF APPLICATION, HVHHF-000001, SHALL

BE INCORPORATED INTO AND BE CONDITIONS OF THIS PERMIT.

85. THIS PERMIT TO DRILL AND/OR OPERATE A WELL FOR GAS PRODUCTION EXPIRES ONE YEAR FROM THE DATE OF

ISSUANCE UNLESS DRILLING OR CONVERSION OPERATIONS ARE COMMENCED PRIOR THERETO.

86. THIS PERMIT TO PERFORM HIGH VOLUME HORIZONTAL HYDRAULIC FRACTURING OPERATIONS, AND ALL

CONDITIONS TO THE PERMIT, ISSUED UNDER THE HYDRAULIC FRACTURING REGULATORY ACT, AND THE

ADMINISTRATIVE RULES PROMULGATED UNDER THAT ACT, SHALL LAST UNTIL PLUGGING AND RESTORATION IN

COMPLIANCE WITH THE HYDRAUILC FRACTURING REGULATORY ACT, AND THE ADMINISTRATIVE RULES

PROMULGATED UNDER THAT ACT, THE ILLINOIS OIL AND GAS ACT, AND THE ADMINISTRATIVE RULES

PROMULGATED UNDER THAT ACT ARE COMPLETED TO THE DEPARTMENT'S SATISFACTION.

87. THIS PERMIT CORRECTS AN ERROR IN CONDITION #3 OF PERMIT HVHHF-000001 ISSUED 8/31/2017. THE

CONDITION IS CORRECTED ACKNOWLEDGING THAT HYDRAULIC FRACTURING FLUID SHALL BE CONFINED TO THE

GRASSY CREEK SHALE, SELMIER SHALE, AND BLOCHER SHALE FORMATIONS.


ONE NATURAL RESOURCE WAY

SPRINGFIELD, IL 62702-1271

PHONE: (217) 782-7756

FAX: (217) 524-4819

OFFICE OF OIL AND GAS RESOURCE MANAGEMENT - DISTRICT OFFICE

2517 WEST NINTH

MT. CARMEL, IL 62863

PHONE: (618) 262-2106

FAX: (618) 262-2108


ERNEST KIERBACH, PERMIT MANAGER

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